> We’ve also seen customer support inquiries, and in general quality of our customers, rise with an increase in price.
Yes, but it should be noted that the price is acting as a filter to exclude a subset of customers, reducing overall customer count.
Obviously it's easier to have 100 customers paying $100/month than to have 1000 customers paying $10/month, but finding those tradeoff points can be hard. It takes time for market signals to settle out and customers to churn away due to high prices.
I've been a customer of several SaaS products that embraced "raise your prices" so much that they slowly became a second-choice option in the market. It takes a long time for people and websites to stop recommending a product as the first-choice option after a price change, so these signals don't appear immediately.
100% agree, and in my case its a service-based business so overhead is much higher per additional client vs an additional SaaS signup.
And 1 problem client, even if they pay 80% of our higher tier pricing, can lead to major headaches across the board.
Something we learned (and are continually learning) is vetting clients as much as they vet us, versus just trying to get the sale.
Funny enough, being more stern on pricing, what we offer, and in general our boundaries of what we cover has led to higher satisfaction from clients and our team.
Yes, but it should be noted that the price is acting as a filter to exclude a subset of customers, reducing overall customer count.
Obviously it's easier to have 100 customers paying $100/month than to have 1000 customers paying $10/month, but finding those tradeoff points can be hard. It takes time for market signals to settle out and customers to churn away due to high prices.
I've been a customer of several SaaS products that embraced "raise your prices" so much that they slowly became a second-choice option in the market. It takes a long time for people and websites to stop recommending a product as the first-choice option after a price change, so these signals don't appear immediately.